I guess my other understanding is that I have to provide it is water proof and it is correctly zone for fire.

They almost flooded the entire ceiling the first day because they couldn't even figure out how to turn the water all the way off.I am looking for an answer on how I can deal with this.

One of the tenants hung a picture on a wall, puncturing a water pipe.

You mentioned the roof and AC being new and i'm assuming they're in good condition.10% should be enough to cover the random water heater that goes or any other lesser headache. 

I recall when I first dipped my toes into out-of-state properties; it felt like navigating uncharted waters, but it opened up some incredible opportunities.Between BRRRR and turnkey, it really boils down to how hands-on you want to be.

I have a lot I have purchased in Cancun and am needing to submit plans for the construction of the home itself fairly soon and am like a fish out of water.

Muddy up the waters more than that and it can become impossible to leverage.  

Here are the numbers I know so far:Rents4 units all currently occupied on one year leases- #1: 1/1 $995 monthly- #2: 1/1 $995 monthly- #3: 1/1 $995 monthly- #4: 2/1 $1,100 monthly- Gross rents: $4,085 monthlyExpenses- $12,070 taxes annually- $350 monthly insurance (my estimate, they have liability only right now)- $175 monthly landscaping- $120 water (electrical on separate meters, tenant pays)- Total expenses: $1,651 monthlyNOI around $2,434 before vacancy, maintenance, and management (although i would likely self-manage these)Property needs about $50K in other repairs and udpates from what I can see.

Even a typical water heat replacement would set you back signficantly.There's plenty to the puzzle that i am unaware of but with what you've outlined here i would consider passing on the property.you know you need managementyou know you need to remove at least one tenantyou know cashflow is meager after considering management.i personally wouldn't recommend a client take on the risk for such a paltry pay out out of state.Even when considering long term appreciation the average amount of headache one assumes with a property will bog you down before the long term play pays off.

Your worry is if the pipes are in tact and if the water and sewage flows out.